14 December 2009
we had filed return alongwith audited reports on time. Notice u/s.142(1) / 143 ( 2 ) was received , we have produced all the documents..
I. T. O - is making an addition of 25 lacs ... ( o/s sundry creditors ) ..and says would raise a demand of 7,50,000 and concealment 7,50,000 /= ie. approx 15 to 16 lacs as total tax due...
we object to this assessed income and tax demand .. we would like to know can we approach the Deputy commissioner / Asst. commissioner having jurisdiction over the Ward ...Range ... ???? or Commissioner I.T
or only option is appeal to CIT (Appeals ) after income-tax officer passes order. ?? ... and if we appeal do we need to pay the whole of the tax demanded ie. 16 lacs .... Impossible to arrange....
if we dont pay the tax .. shall we be in default and will our appeal be accepted ????
we have filled the return paid tax due as per return filled by us .... what will be the minimum tax to be paid for filling appeal... is it 16 lacs .... ??
14 December 2009
Dear Harsh, I can understand your miserable situations.
If you have filed all the sundry creditors ledger accounts with their name, addresses and PAN number then the at first instance ITO cannot add the amount while making assessment.
If he has sent notices to the creditors who in turn are not replying then this is unfortunate state for you. But, before adding the amounts the ITO has to issue show cause notice to you for which you should reply very carefully; specially with the help of one Income Tax Consultant.
Even if situations remains unchanged; you can go for appeal. First appeal lies with CIT(Appeals) for which you have to pay a nominal fee of Rs.1,000/-. Without paying demands you can file appeals. A petition can also be filed for stay of demand. Looking to the genuine hardship to the assessee; he may grant such stay. You should hire the services of an expert Income-Tax Practitioner.
As per Income Tax Act; you have to prove the genuineness of creditors. Be careful. If you have not still filed the ledger copies, addresses and PAN of the creditors; still you should file these to the ITO.
CAclubindia
